Strong Jobs Report and Rising Oil Prices Keep Markets on Edge
Strong Jobs Report and Rising Oil Prices Keep Markets on Edge
By:JJ Kinahan
The economy added 254,000 new jobs, but the price of crude oil remains a wild card
- Strong jobs data highlights resilience of the U.S. economy.
- Oil prices are rising because of geopolitical tensions that threaten to reignite inflation.
- Temporary resolution of the dockworkers' strike has reduced concern about immediate economic disruption.
Markets remained relatively quiet yesterday as investors awaited the much-anticipated U.S. employment report. The S&P 500 slipped by 0.2%, the Nasdaq Composite remained flat, and small-cap stocks saw the biggest losses of the day, with the Russell 2000 falling over 0.5%. The Dow Jones Industrial Average also dropped 0.4%.
This morning, the Labor Department released the employment report, which exceeded expectations. Economists had forecast 147,000 new jobs and an unchanged unemployment rate of 4.2%. However, the actual data showed 254,000 new jobs, with the unemployment rate dropping to 4.1%.
Upward revisions for both the July and August jobs reports further highlight the economy’s resilience. With the latest consumer price index (CPI) report scheduled for next week, attention has now turned to inflation trends. Thus far, the data suggests the economy is on track for a soft landing.
The price of crude oil
However, oil prices remain a wild card. Oil commodity surged by over 5% yesterday as geopolitical tensions escalated after Iran's missile attack on Israel. Crude oil prices have risen by nearly 10% this week, which could disrupt the recent progress in curbing inflation.
Oil is a key commodity that could reignite inflationary pressures, especially as it hovers near its 200-day moving average of $75 per barrel. A close above that level could signal bullish trends for oil but could complicate efforts to control inflation.
The dockworkers’ strike
Another major development was the temporary resolution of the East Coast dockworkers' strike. Workers were offered a 62% pay increase over six years, but the deal lasts only until January, leaving the long-term outcome uncertain.
Shares of companies like Walmart (WMT) and Target (TGT), potentially affected by a prolonged strike, have seen slight gains today in premarket trading.
So, the focus remains on jobs data and oil prices, which will likely drive market sentiment. As always, investors would do well to keep their long-term goals in mind.
JJ Kinahan is CEO of IG North America—which includes tastylive, tastytrade and IG's FX Business. Kinahan traded for 21 years at the Chicago Board Options Exchange. He serves on the CBOE Advisory Board and the SIFMA Options Committee. @thejjkinahan
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.